The value of the Euro slid to a four-year low after expectations were raised that the central bank could begin electronically printing money in an attempt to prevent deflation across the single currency bloc.

European Central Bank chief Mario Draghi warned the risk of deflation was higher than six months ago.

In an interview with a German newspaper, he said that ECB ‘is in technical preparations to alter the size, speed and composition of our measures… to react to a too-long period of low inflation’.

QE? European Central Bank chief Mario Draghi warned the risk of deflation was higher than six months ago

Analysts leapt on the comments as a sign it could begin quantitative easing – a form of printing money – as early as this month.

Lee Hardman, a currency analyst at Bank of Tokyo-Mitsubishi UFJ, said: ‘The comments suggest the ECB will soon adopt sovereign debt Quantative Easing (QE), which may come as soon as their next meeting on January 22.’